DAX 40 Index Analysis: Critical Support Shattered as Sellers Take Command

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the GER40 for September 17, 2025.

Technical Analysis of GER40

GER40 Daily Chart Insight

• The short-term forecast remains negative. Since early August, the price has established a declining pattern marked by consecutively lower peaks. Current trading occurs beneath the short-term moving average (shown in purple), which now serves as a dynamic resistance level. The Stochastic Oscillator continues its downward trajectory without reaching oversold conditions, indicating that selling pressure may persist.
• Key support area: The first support level sits at approximately 23,650, which aligns with the recent swing lows recorded in late August and early September. The key support zone is located around 23,400, representing the medium-term moving average (shown in black) that the price is currently testing. A decisive close below this critical level would signal a significant bearish development. Should the key support fail, the major support target lies near 23,200, marking the substantial low that was established in late June and serving as the next primary downside objective.

GER40 2-Hour Chart Analysis

• The outlook is unequivocally bearish. All three moving averages are sloping downward, indicating a well-established downtrend. The price is trading below all three, which is a classic sign of bearish control and momentum.
• Breakout scenarios: The most likely outcome is continued downside momentum, with a sustained break below 23,365 confirming the selling wave and targeting 23,300 or lower. Traders may consider shorting any bounce toward resistance at 23,580-23,600. A bullish reversal remains less probable and would require reclaiming support at 23,600 first. A genuine trend reversal would need a decisive break above 23,750, potentially targeting major resistance around 23,900.

GER40 Pivot Indicator

• After the steep sell-off, the price has moved into a narrow consolidation phase. This lateral movement following significant downward momentum typically creates a “bear flag” formation. Such patterns are traditional continuation signals, indicating that the market will likely resume its declining trajectory after this temporary pause.
• Bearish Breakdown (Higher Probability): The primary expectation is for the downtrend to persist. A confirmed break and close beneath the nearby support level at approximately 23,345 would complete the bear flag formation. This development would probably initiate another selling wave, with initial price objectives at 23,300 followed by 23,250.
• Bullish Breakout / Reversal (Lower Probability): For a bullish scenario to develop, the price must first break decisively above both the consolidation peak and the purple moving average near 23,418. While this would negate the current bear flag pattern, it would not reverse the broader bearish trend. A sustained advance beyond 23,500 would be necessary to indicate that a more substantial correction is taking place, though strong bearish momentum would likely remain intact.

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Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.